FX.co ★ Japan Services Sentiment Hits 19-Month High

In October 2025, Japan's service sector index reached 49.1, up from 47.1 in September, marking its highest point since March 2024. This is the sixth consecutive monthly increase and surpasses market expectations, which were set at 47.6. The household budget trend index also saw improvement, buoyed by advancements in retail and other sectors, even as housing-related industries experienced declines. Concurrently, the corporate trend index saw acceleration due to heightened activity in manufacturing and other areas, with employment conditions also showing positive momentum. Additionally, the economic outlook index rose to 53.1 in October from 48.5 in the previous month, representing the highest reading since July 2023 and indicating a sustained recovery in Japan’s economy.